Systemic Impact of Social Technology

by Jay Deragon on 09/13/2010

A systemic change is when an outside or inside influences change the entire dynamics of your business model.

A system is the collective processes that enable a business to create, distribute, engage and transact with a market.  Market transactions come in the form of communications which in the end create a financial transaction which is the fuel for every business.

In any “system” the effectiveness of the connected processes aimed at end objectives determines the value of the final outcomes.  Most businesses focus on outcome results, transactions, and when the results don’t come managers look for “reasons” why.

System outcomes can be influenced by numerous factors such as:

  1. Competitor innovation that attracts the market away from your business
  2. Cost of goods increases and margins shrink. You cut expenses to survive.
  3. Employee turnover which fuels inconsistency and waste.
  4. Customer leave due to dis-satisfaction
  5. Market shifts that you are unaware of and don’t understand

The #1 influence that is threaded through all five examples above is communications.

If your not listening to the market of conversations you are missing strategic intelligence that could forewarn you of the five factors listed above plus numerous others.

When Connections Within The System Disconnect

Every business relies on the efficient and effective flow of information. When the flow of  information slows down or breaks cost increase due to delays, defects, breakdowns and time is robbed away from productivity.  Information flows through communications and those that communicate rely on the accuracy and relevancy of what is communicated. Otherwise the wrong communications drive the cost up and performance down.

Everyone knows what happens when a business doesn’t communicate, or communicates the wrong thing, with their market.  We all know what it is like calling a business whom we have bought from only to be put on hold for more than 1 minutes and then when we finally get a real person on the line and they are rude, indifferent and worse provide no resolution to what we are seeking.  These results are representative of a “systemic breakdown” between a business and its market.

Social Media’s Systemic Effect

Social media is and will continue to create systemic change for any and all businesses. Why? Because it is a new system of communications that connects people, customers, suppliers, employees and entire markets. The effect is disruptive, instantaneous and waits for no one. The impact of a new system of communications changes everything. It turns old business models upside down and inside out.  What you thought was relevant to your business becomes irrelevant. What you thought was important becomes unimportant. What you used to define as “your business” gets redefined.

Don’t believe any of this? Then just sit and watch as markets get redefined, disrupted or displaced by the influence of communications created by and for the benefit of any market, the people that consume that which you’ve tried forever to “push”.

When communications shift it changes everything because everything is tied to communications.

Change is the biggest challenge for any business primarily because managers try to control the change. Today’s market environments are driven by change fueled by people inside and outside the system. People are now the engine of change and the fuel is communications. You can try and control people and lose. You can give people control and win.  The battle for control is no longer a battle won by control rather it is won by giving control.

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josephgrasso (Joe Grasso) September 13, 2010 at 5:39 am

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Systemic Impact of Social Technology: You can try and control people and lose. You can give people cont… [link to post] [email protected]

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AronStevenson (Aron Stevenson) September 13, 2010 at 5:07 am

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Systemic Impact of Social Technology [link to post] #socialmedia

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